Ron Berger

The limits ofguanxi from the perspective of the Israeli diamond industry

Purpose - Recognizing the significant impact of Design/methodology/approach - To illustrate the evolutional direction of the Chinese institutional system, the authors compare it to a similar system that went through the evolutionary cycle from a social to a rational institutional base of exchange and discuss what one can learn from the institutional evolution process of the global diamond industry and its implications for the current evolution of Chinese institutions. The authors compare two similar cultures/religions, Judaism and Confucianism. Findings - This study found parallels between the evolution of the Israeli diamond industry, dominated by Orthodox Jews, from a social exchange mechanism to a transactional mechanism and the present ongoing rationalization of the Chinese economy, dominated by the Confucianism culture from a social to a transactional business mechanism. Originality/value - Despite the vast efforts of researchers in the area of

Guanxi: the evolutionary process of management in China

As China becomes increasingly important to the global economy, it becomes increasingly prudent to understand the mindset of the Chinese manager. Recognising the significant impact of guanxi and its influence on management in China is important for Western firms. The paper illustrates the evolutionary process of the Chinese managerial infrastructure and builds a basic framework for understanding it better. This study found that China is in the midst of an institutional managerial evolution from a communist based managerial system to a capitalistic socialist system managed by the communist party. An attempt to replace the old discretion based system of revenue sharing with a new rule based system of revenue-sharing demanded an evolution of managerial practices. The managerial aspects of how to transform the present Chinese managerial approach to an Anglo Saxon, transparent one based on clear rules of trade backed by a strong business ethics backbone and models is crucial.

The evolution of business ethics in India

Purpose - – Religion and culture can influence ethical behavior in business. It is suggested that there has been and continues to be, a deep interrelationship between religion, business ethics, and economic activity in India. As India is becoming a major global economic business partner, understanding its unique ethical business infrastructure is gaining in importance. The purpose of this paper is to intend to further the understanding of Indian (“Vendantic”) business ethics, as opposed to Greco – Roman business ethics, as the foundation of business culture in India. This paper further elaborates on the evolution of business ethics and its implications on doing business in and with Indian companies. Design/methodology/approach - – The authors undertook a conceptual approach in order to understand the evolutionary process of Indian business ethics in a holistic view in order to understand better its workings and effect on business interaction. Findings - – The paper explains the constructs of business ethics in India and shows its evolution over time. Originality/value - – This original theoretical paper examines the evolution of Indian business ethics over time in line with environmental changes in the Indian business landscape.

How companies from developing and emerging countries can leverage their brand equity in terms of place branding

Purpose – The purpose of this conceptual paper is to present a new approach that will enable marketers in developing and emerging countries to promote their products, irrespective of their country of origin’s image. Many companies in emerging and developing countries, intent on exporting their products/services, struggle to overcome the negative “made-in” image barrier. Despite tremendous efforts by the governments of these countries to change the unfavorable image of products made there, their good quality products are still perceived as inferior compared to companies whose products are “made-in” in countries with a positive image, mainly developed countries. Design/methodology/approach – The proposed conceptual model hinges on two dimensions – global political status and human capital capabilities. Using this framework, four different types of country destination positioning emerge, each with its own country branding strategy. Findings – Companies from emerging and developing countries can compete on an...

The evolution of Chinese business ethics

Purpose – This article aims to present a historical overview of the evolution of business ethics in China and highlights the ways in which its ethical structure lags behind its rapid economic expansion. Understanding Guanxi, the Chinese social network of reciprocal business relations common in Confucian cultures, has long been recognized as one of the major success factors when doing business in China (Hwang et al., 2009). Recognizing the significant impact of Guanxi and its influence on everyday dealings in China is, thus, crucial for Western firms. Whereas considerable research has dealt with the growth of Chinese industries in recent years, the key relationship between changes in its economy and shifts in Chinese business ethics has been neglected although it impacts the ways Westerners, in particular, both clinch deals and judge Chinese firms. The implications of this disparity for global business are discussed. Design/methodology/approach – The discussion draws on the academic literature and the rese...

Globalisation, property rights and knowledge networks

This conceptual paper introduces the important link between law and knowledge resources. We analyse the three key types of institutions: common law, civil law, and social norms, conventions and how they define the nature of property rights for knowledge resources and assets. Knowledge, because of its intangible nature and value, raises fundamental issues of, measurement and property rights that do not arise for more traditional, tangible assets. We provide a conceptual analysis on how to measure and assess the value of property rights for knowledge assets and knowledge networks. A key conclusion from our analysis is that informal institutions such as social norms and conventions are relatively superior to legal institutions such as common law and civil law in the analysis of property rights of knowledge assets and knowledge networks.

Strategies for marketing diamonds in China from the perspective of international diamond SMEs compared to the west

Purpose – The Chinese diamond industry is dominated by SMEs. The purpose of this paper examines which of the three business strategies prevalent in the global diamond industry is utilized by Chinese diamond SMEs compared to those used in other western countries. In so doing, it maps the major actors in the Chinese diamond industry and identifies the challenges faced by SMEs when entering the highly competitive but very lucrative Chinese diamond industry. Design/methodology/approach – A two stage approach was undertaken. Step 1 involved exploratory field work with leading institutions. In the second stage a qualitative questionnaire was administered to members of 54 small to medium-sized international diamond SMEs operating in China. The difficulty of acquiring information on this secretive industry was further hindered by the equally secretive nature of Chinese culture. Findings – Guanxi was found not to be prevalent in the Chinese diamond industry. This is an interesting finding as China is a socially em...

Exploring the gap between policy and practice in private branding strategy management in an emerging market

Purpose Private-label goods are now available in more than 55 countries worldwide and their total sales value is estimated to be in excess of one trillion US dollars. The prevalence of such goods, however, drastically differs across countries. Whilst market share in some developed economies exceeds 50 percent, penetration appears much lower in emerging economies. The purpose of this paper is to investigate marketing issues surrounding such low-penetration levels in emerging markets. Design/methodology/approach In-depth interviews were conducted with: 36 store managers and the marketing director of a large emerging market retail chain. Findings Eight factors were found to impede the retail chain’s vision regarding implementation of the private branding strategy. Practical implications Several implications are extracted from the study, mainly in the context of emerging markets that managers should consider in order to improve their private branding strategies. Originality/value Although some research has aimed to shed light concerning the significance of private brands from retailers’ perspectives, such research has not tended to address the issue of how to implement private brand strategies in emerging markets. To bridge the gap, this study investigates these issues from a retail chain management perspective in order to potentially leverage performance advantages associated with the nurturing of private-label branded goods.

Mastering the Art of Jugaad and Guanxi: A Western Guide to Business Practices in India and China

Purpose: Successfully entering foreign markets is a major issue in the field of international business. Cultural ignorance increases uncertainty that hinders a firms international performance. Research has shown that the impact of cultural differences is one of the biggest obstacles to entering the Chinese and Indian markets, which are seen as one of the more important and growing markets in the last decade. This paper builds a framework for analyzing and choosing effective business strategies across the divide between very different business systems and cultures. It assists western firms in how to enter these complex markets and increase the probability of success. Design/methodology/approach: the proposed conceptual model hinges on social networking theory. Three different strategies are presented based on the different cultural, political and historical settings of China and India. Findings: the paper builds a framework for India and China structured around three core attributes to building social networks. It shows what international firms need to do in-order to build social networks that allow access to the local markets and decrease business risks. Practical implications: the proposed conceptual models enable marketers to cope even with the most complex markets and improve their probability for success. Originality/value: the literature review demonstrates that researchers have not dealt in-depth with the social constructs of social networks, especially in India. The paper depicts the commonality and differences between the two countries and serves as a basic business model when penetrating these markets.

The enigma of the Chinese diamond industry

Purpose – The purpose of this paper is to illustrate the evolution of Chinese business ethics over time and how it impacts business. While much research attention has been directed toward China and its various industries, the Chinese diamond industry has been largely neglected. This industry is the second in size and fastest growing globally. It is interesting to examine its evolution over time and how external factors affect the firms’ business ethics behavior. Design/methodology/approach – Exploratory field work involving the interview of major players was undertaken, complemented by extensive desk work, was used to create a base for future in-depth research of the secretive Chinese diamond industry. Findings – A paradox was identified in the Chinese diamond industry, namely, that while Chinese businesses tend to follow a relational governance model, China’s diamond industry tends to use rational mechanisms of governance and exchange, a paradox that is explained by mitigating factors. Research limitatio...